Enter the Dragon: Eight Lessons for Western Business Leaders Seeking Extraordinary Talent in China

The U.S. and China are in the early stages of a long-term, protracted conflict otherwise known as ‘Cold War 2.0.’ I consider myself privileged to have spent 15 years in business development and hospitality operations in China and to be among the very few foreigners who have successfully created and scaled a hotel brand in the country and advanced its first Carbon neutral hotel. As an Asian born person, who is a dual Canadian and U.S. citizen, China gave me the exhilarating experience of being a triple immigrant. My years in China have made an indelible impact on my worldview or what Germans refer to as their “Weltanschauung.”

美国和中国正处于一场旷日持久之冲突的早期阶段，也被称为“冷战2.0”。我有幸在中国从事商业开发和酒店经营15年之久，成为少数几个在这里成功创立和发展一个酒店品牌并推广了中国的第一家碳中和酒店的外国人之一。作为出生于亚洲，且拥有加拿大和美国双重国籍的我，中国给我带来了振奋的三重移民体验，在中国的这些年对我的世界观（也就是德国人所说的“Weltanschauung”）产生了极其深远的影响。

In 2015, when I was a China-based CEO, I attended a private lecture at the Harvard Club in Shanghai, which was hosted by Harvard Business School professor Warren McFarlan. He was brave enough to discuss his book Can China Lead? Reaching the Limits of Power and Growth on Chinese soil, albeit with a friendly audience. In his book, Professor McFarlan argued that China, “a country of engineers”, simply does not have the cultural or soft power to replace the U.S. as a superpower. I asked a few of my Chinese executives, including those from Taiwan and Hong Kong, to attend the briefing. Every country has its own propaganda and above all I was interested in the perspectives of our associates who were raised in the PRC. Several months prior to this event, our Shanghai-based finance and development team joined me on a tour of the Korean War museum in Seoul, which was one of the few times I saw them openly expressing their emotions about potential implications of being educated in China. They came away not knowing what to believe and those who remained committed to Beijing’s version of the events, shared an entirely different history about the war with Americans as the initial aggressor as it was widely taught in Chinese public schools.

2015年在我担任驻中国首席执行官期间，我参加了一场由哈佛商学院（Harvard Business School）教授沃伦·麦克法兰（Warren McFarlan）在上海的哈佛俱乐部（Harvard Club）举办的私人讲座。尽管参加讲座的都是友好的听众，当时他在中国的土地上讨论他的著作《中国能领导吗？达到权力和增长的极限》（Can China Lead? Reaching the Limits of Power and Growth）依然是勇气可嘉。McFarlan教授在他的书中指出，作为一个“工程师国家”，中国不具备取代美国成为超级大国的文化或软实力。当时我邀请公司的几位中国（包括来自台湾和香港的）高管参加了这次讨论会。每个国家都有自己的政治宣传，而我对成长于中国的高管们的观点尤为感兴趣。在这次活动几个月前，公司在上海的金融与发展团队同我一起参观了首尔的朝鲜战争博物馆，那是为数不多的几次我看到他们公开表达对在中国接受教育所产生潜在影响的感受。他们中有的在离开博物馆时持怀疑态度，而那些依然坚信中国政府所描述版本的人则对这一段战争历史有着完全不一样的认知，他们认为就像是被中国公立学校广泛教导的那样，美国人是最初的侵略者。

Professor McFarlan was not an ordinary professor: He earned three degrees from Harvard, wrote over 300 cases and served six years as co-director at the Case Development Center at the Tsinghua University School of Economics and Management in Beijing, a post co-funded by the CEO of largest U.S.-based private equity firm Blackstone Group. His book was not even published in China but he had the courage to share his views in private with HBS alumni working in China. In his presentation, McFarlan labelled China “a culture of engineers,” a country whose state-owned enterprises and political institutions were incapable of an equivalent transformation. McFarlan did not underestimate the rise of the capitalist class in China and the appeal of its model – which was based on replicating Singapore’s success by creating economic enterprise zones. Indeed, China’s path to capitalism was well-researched, methodical and modeled after the East Asian Tigers. However, if China could not lead, the implications were not good: it would either collapse like the Soviet Union, gradually democratize and play by our rules or its immaturity on the world stage would result in World War Three. It was not surprising that my Chinese colleagues brushed aside McFarlan’s research as culturally biased and short-sighted. After all, China was about to become the world’s largest economy by purchasing power parity, and it seemed industries like travel and hospitality were going to extraordinary lengths to win Chinese business and wallet share.

McFarlan教授并不是一位普通的教授：他在哈佛大学获得了三个学位，撰写了300多个案例，并在北京清华大学经济与管理学院案例开发中心担任了6年的联合主任，该职位由美国最大的私募股权公司黑石集团（Blackstone Group）首席执行官共同出资。McFarlan教授的书甚至没有在中国出版，但他有勇气私下与在中国工作的哈佛商学院校友分享自己的观点。在他的演讲中，McFarlan教授称中国为“工程师文化”，这个国家的国有企业和政治机构根本无法实现与之相当的变革。McFarlan教授并没有低估中国资产阶级的崛起及其模式的吸引力，这种模式的基础是通过创建经济企业区，来复制新加坡的成功。事实上，中国的资本主义之路，是经过深入的研究且有条不紊进行的，并以东亚四小龙为榜样。然而，如果中国不能发挥领导作用，结果终将差强人意：要么像苏联那样解体，逐渐民主化，按西方规则行事；要么其在世界舞台上的“不成熟”将导致第三次世界大战。也难怪我的中国同事对McFarlan教授的研究不屑一顾，认为他的研究带有文化偏见，目光短浅。毕竟，按购买力平价来计算，中国即将成为世界最大经济体，而旅游和酒店等行业似乎正竭尽全力赢得中国的业务和钱包份额。

In contrast, his peer, Harvard Professor William Kirby, a Sinologist by training, recently characterized the U.S-China relationship as a marriage rather than a rivalry. Kirby said the U.S. and China “are basically married: when one of us rolls over, the other falls.” From a purely empirical perspective, it is difficult to argue with his thesis. There is no doubt that the economic relationship between the U.S and China remains the world’s most important: By 2021, China owned $1 trillion or roughly 13% of U.S. national debt, second only to Japan. In December 2022, the total value of the U.S. trade in goods with China amounted to about $51.1 billion U.S. dollars composed of a $13.8 billion U.S. dollar export value and $37.3 billion U.S. dollar import value. Exports to China create 2 million U.S. jobs in sectors such as services, higher education, agriculture, and capital goods such as airplanes and semiconductor devices. Furthermore, the integration is much deeper after the global pandemic: the old adage that China is the factory of the world is misleading. The service sector, which includes financial services, travel, media, and technology, is now over 52% of China’s GDP (versus 67% for the U.S). The children of this marriage included the millions of Chinese students educated at top U.S. universities and they needed the parents to behave like grown-ups.

与之相反，他的同僚，接受过汉学家训练的哈佛大学教授威廉·柯比（William Kirby）最近将美中关系描述为婚姻而非竞争。柯比（Kirby）说，美国和中国“基本上是一种婚姻关系：当一方跌倒时，另一方也会不顺。”从纯粹的实证角度来看，很难与他的观点进行辩驳。毫无疑问，美中之间的经济关系仍然是世界上最重要的：截至2021年，中国持有1万亿美元或约13%的美国国债，仅次于日本。2022年12月，美国与中国的商品贸易总额增至约511亿美元，其中包括138亿美元的出口金额和373亿美元的进口金额。美国对中国的出口在服务、高等教育、农业以及飞机和半导体设备等资本品领域创造了200万个国内就业岗位。此外，在全球疫情之后，产业整合更为深入：中国是世界工厂的陈旧说法是有误导性的。包括金融服务、旅游、媒体和科技在内的服务业如今已占中国GDP的52%以上（美国为67％）。这段“婚姻”的孩子包括数百万在美国顶级大学接受教育的中国学生，他们需要父母像成年人一样行事。

It turns out, both Professor McFarlan and Kirby are partially correct. According to state media, Xi told Trump in a phone call in March 2020 that US-China relations had reached an important juncture. Working together brings both sides benefits, while fighting hurts both. Cooperation is the only choice, he said. Xi hoped the US would take “substantive actions” to improve US-China relations to develop a relationship that is without conflict and confrontation but based on mutual respect and mutually beneficial cooperation.

事实证明，McFarlan教授和Kirby教授的观点都有正确的方面。据官方媒体报道，习近平主席在2020年3月与特朗普总统的电话中表示，美中关系已经到了一个“至关重要的十字路口”。合则共赢，斗则俱伤。合作是唯一的出路。习近平主席希望美国采取“实质性行动”改善美中关系，建立一种“不冲突，不对抗”，而是基于“相互尊重，互利合作”的关系。

Three years later, it’s evident that it was a rocky marriage to begin with and it is getting worse. The couple are on unbelievably bad terms, with very few political or business leaders openly advocating on each other’s side while a high barrier digital war is growing taller by the day, separating their civilizations. It is not the purpose of this writer to place blame on China, the U.S., international organizations like the WHO or U.N, or to analyze the underlying economic conflicts exacerbated used by the pandemic. The purpose of this chapter is to analyze how Western hospitality leaders and their shareholders, who have bet on local Chinese talent to grow their brands, can survive the storm and perhaps even capitalize on the decoupling between the U.S. and China.

Perhaps the inflection point was not digital war with Huawei or the Coronavirus. It was when CCTV and Tencent turned off the NBA, which had 500 million Chinese viewers, after a single tweet from a team owner supporting the Hong Kong protestors. Beijing’s disproportional response to a tweet and the NBA’s inability to engage in business diplomacy to overcome this incident and reinstate the single most popular sport in China (and a sport President Xi loves to watch when he is relaxing) was a clear signal that we were in a cultural war.

三年后再回看，很显然这段婚姻从一开始就困难重重，而且正在变得越来越差，现在已经处于令人难以置信的糟糕状态，几乎没有政界或商界的领袖公开站在对方的立场，而高度的数字战却愈演愈烈，将两国的“文明”割裂开来。本文作者的目的并非要对中国、美国、国际组织（如世界卫生组织和联合国）加以责难，也并非要分析被疫情加剧的深层经济冲突。本文的目的是分析对于押注通过中国本土人才发展其品牌的西方酒店业领袖及其股东来说，如何才能在这场风暴中幸存下来，甚至可能去利用美中关系的脱钩。

或许转折点并不是与华为的数字战或新冠病毒，而是当中央电视台和腾讯视频选择封杀拥有5亿中国观众的NBA节目，仅仅是因为一名球队老板发了一条支持香港抗议者的推特。北京方面对一条推特的过激回应，以及NBA无力通过商务外交来平息这一事件从而恢复这项在中国最受欢迎的体育运动（也是习近平主席在放松时最喜欢看的体育运动），都清楚表明了我们正处于一场文化战争中。

So, what does this mean for business leaders aspiring to build global brands in hospitality, retail, and other service sectors? Will Chinese consumers still seek American brands and content? Or will government initiatives push them towards alternatives? How can business leaders create value in the 2nd largest economy in the world which plays by a different set of rules? Is it time to exit or double down? Should brands even consider entering China?

那么，这对于那些渴望在酒店业、零售业和其他服务领域打造全球化品牌的商界领袖来说，意味着什么呢？中国消费者还会追求美国品牌和产品吗？或者中国政府的举措会将他们推向其他选择？商业领袖们如何在这个遵循不同规则的世界第二大经济体中创造价值？是该退出还是加倍下注？品牌是否还应该考虑进入中国市场？

Category-leading Western brands appear committed to the China market, less for supply chain but more for a sizable portion of their revenues, growth, and innovation. While the media likes to cover the supply chain, one thing continues to save the marriage from a bitter divorce: the Chinese consumer. Consumer interests are continuing to converge as tech savvy Chinese millennials are seeking the latest brand innovations. Pfizer, Apple, Nike, the NBA, Proctor and Gamble, Starbucks, KFC, Wyndham, Disney, General Motors, Intel, Microsoft, and LinkedIn are the agents of social integration and have spent decades investing in China. They are not going to walk away from doing business in China.

领先的西方品牌似乎对中国市场情有独钟，不仅仅是因为供应链，更看重的是中国市场的营收、增长和创新。虽然媒体喜欢报道有关供应链的话题，但有一个因素仍在继续挽救这桩婚姻：那就是中国的消费者。随着精通科技的中国千禧一代寻求最新的品牌创新，消费者的兴趣正在不断趋同。辉瑞（Pfizer）、苹果（Apple）、耐克（Nike）、NBA、宝洁（Proctor and Gamble）、星巴克（Starbucks）、肯德基（KFC）、温德姆（Wyndham）、迪斯尼（Disney）、通用汽车（General Motors）、英特尔（Intel）、微软（Microsoft）和领英（LinkedIn）等公司都是社会融合的代表，并且已经花了数十年的时间在中国投资。这些公司不会放弃在中国的商业发展。

It is not just the size of the Chinese market that remains attractive to these companies. The key advantages for China have been its relative ease of doing business and its cutting-edge infrastructure. But now it is China’s talent, which, despite rising labor costs, remains unrivaled in most measures of productivity. As large markets go, there are no alternatives to create shareholder value through innovation anywhere near China, which is automating its factories and production centers at a breathtaking pace.

对这些公司来说，具有吸引力的不仅仅是中国市场的规模。中国的主要优势曾经是相对宽松的经商环境和先进的基础设施。但现在中国的优势是人才，尽管劳动力成本不断上升，其人才优势在大多数生产力衡量标准下依然是无可匹敌的。就大型市场而言，中国正在以惊人的速度将其工厂和生产中心进行自动化，因而在通过创新来创造股东价值方面没有其他地方能够与中国相提并论。

Despite recent initiatives to shift to an India-centric Asian supply chain strategy and the rise of Indian born CEOs in the U.S., there is no economic evidence its labor market and infrastructure provides a viable alternative to China. Furthermore, consider this list of companies that have exited one-sided joint venture deals in India, in the past few decades: Walmart, Hilton, IBM, General Motors, and DKNY to name a few. India still suffers from its hangover from 200 years of colonization with massive bureaucracy, high tariffs, poor infrastructure, and security risks. And its current administration is rated among the worst in democracies for freedom of the press and independent judiciary not to mention now touting eight of the top ten most polluted cities on earth.

尽管最近出现了转向以印度为中心的亚洲供应链战略，以及在美国印度裔首席执行官的崛起，却没有经济证据证明印度的劳动力市场和基础设施可以取代中国。再看看过去几十年在印度退出单边合资协议的公司名单：沃尔玛（Walmart）、希尔顿（Hilton）、IBM、通用汽车（General Motors）和DKNY等等。印度仍然受困于200年殖民统治遗留下来的问题，包括庞大的官僚体系、高关税、基础设施差和安全隐忧。而且目前的印度政府在媒体自由和司法独立方面的评价是民主国家中最糟糕的，更不用说在目前地球上污染最严重的十个城市中印度包揽了其中八个。

Moreover, India is playing its old game of balancing Chinese interests with their American friends. China’s low-cost mobile phone company Xiaomi is India’s market leader and China is investing at least $15 billion a year into Indian companies in sectors such as pharmaceuticals. China also has its eyes on the big Indian prize: infrastructure.

The bottom-line is American companies have never succeeded in India. Now China is ahead of the curve in India. Even if China Inc falters, India is at least 50 years away from being an alternative to China for anything except talent acquisition or importing talent from India to the U.S.

此外，印度正在和它的美国朋友一起玩一个平衡中国利益的老游戏。中国的低成本手机公司小米是印度市场的领军人物，中国每年向印度制药等行业的公司投资至少150亿美元。中国也将目光投向了印度的“大奖”：基础设施建设。

问题的根本在于美国公司从未在印度取得成功。现在，中国在印度市场处于领先地位。即使中国遭遇困难而进展缓慢，除了人才招募或向美国输入人才以外，印度在其它方面至少需要50年的时间才有可能取代中国。

Alternatively, outside the software and social media sectors, consider the success of these American-based companies in China:

Biopharma: Pfizer is China’s market leader in cardiovascular and antibiotics, has invested $1.5B in China, and is the country’s leading foreign biopharmaceutical company with four state of the art manufacturing plants and 11,000 employees in over 300 cities.

Sports: NBA China, the separate company the league set up in 2008 to manage its retail deals with Alibaba and a 5 year $1.5B content deal with Tencent, is now valued by the league at $10-15 billion. The league has offices in Beijing, Shanghai, Taipei, and Hong Kong, and nearly 500 million fans watched NBA programming on Tencent during the 2018-19 season and 21 million fans watched Game 6 of the 2019 Finals, according to NBA data. The league also has more than 200 million followers on social media in China. In March, the league opened the second-largest NBA store outside of North America in Beijing. Despite their current challenges, the NBA’s success in building the game in China is remarkable.

另一方面，除了软件和社交媒体领域之外，让我们来思考一下这些美国公司在中国取得的成功：

生物制药行业：辉瑞（Pfizer） 公司是中国心血管和抗生素药物市场的领导者，在中国投资了15亿美元，是中国领先的外资生物制药公司，拥有4家最先进的制药厂，在300多个城市拥有1.1万名员工。

体育运动行业：NBA中国（NBA China）是该联盟于2008年为管理其与阿里巴巴（Alibaba）的零售业务以及与腾讯（Tencent）达成的一项为期5年、价值15亿美元的内容业务而成立的一家独立公司。目前该联盟对其估值为100亿至150亿美元。联盟在北京、上海、台北和香港均设有办事处，根据NBA的数据显示，在2018-2019赛季期间，近5亿球迷在腾讯的平台上观看了NBA的节目，2,100万球迷观看了2019年总决赛的第六场。该联盟在中国社交媒体上的粉丝超过2亿。今年3月，联盟在北京开设了仅次于北美的第二大NBA门店。 尽管目前面临诸多挑战，但NBA在中国打造篮球运动的成功是令人瞩目的。

Retail: Walmart, who committed $1.2B to build distribution and logistics across China in 2019 recently confirmed it is proceeding with investing $425mm in Wuhan in the next 5-7 years to open at least four new Sam’s Club stores, 15 additional shopping malls, and more community stores in the capital of China’s Hubei province. The U.S.-based retailer already has 34 stores and two distribution centers in the city.

零售行业： 于2019年承诺斥资12亿美元在中国各地建设配送和物流系统的沃尔玛（Walmart）最近确认将于未来5-7年投资4.25亿美元，在中国湖北省省会武汉开设至少4家Sam's Club商场、15家购物中心和更多社区商店。这家美国零售商已经在该市拥有34家门店和两个配送中心。

Hospitality: Wyndham is China’s largest foreign hotel franchisor with over 1500 properties under six brands, and it expects to open 500 more hotels in the next 5 years. Starbucks, which has over 4200 stores in China and generated an estimated $2.9B in revenues, remains committed to investing $130mm to launch a global roasting facility in its coffee innovation park.

酒店服务行业：温德姆（Wyndham）集团是中国最大的外资酒店特许经营商，旗下六个品牌拥有1,500多家酒店，并计划在未来3年内再开设500多家酒店。星巴克（Starbucks）在中国拥有4,200多家门店，营业收入估计达29亿美元。星巴克（Starbucks）仍致力于投资1.3亿美元，在其中国的咖啡创新园（coffee innovation park）建立一套全球烘焙设施。

Education: U.S. universities looking for restoring revenues lost after Covid-19 will continue to seek out Chinese students. The number of Chinese students studying in the U.S. grew from 100,000 in 2009 to almost 400,000 in 2018, generating a significant source of revenue. While these figures have dropped after the pandemic to 300,000, Chinese students are still among the largest foreigners in the U.S., especially at its elite universities. Furthermore, according to Professor Kirby, this is an opportunity to improve the marriage: these are our children. What we need now are some really grown up parents.

教育 行业：在新冠疫情过去之后，美国大学为了弥补损失的收入将会继续招收中国学生。在美国留学的中国学生人数从2009年的10万人增长到了2018年的近40万人。这些中国学生为美国的学校创造了可观的收入来源。虽然在疫情后这一数字下降到了30万人，但中国学生仍然是美国大学，特别是顶尖大学，中最大的外国留学生群体之一。此外，根据Kirby教授的观点，这是一个改善婚姻的机会：“这是我们的孩子。我们现在需要的是真正成熟的父母。”

The Game is Changing and It’s a Great Opportunity for New Entrants

游戏规则正在改变，这对新玩家来说是一个巨大的机会

That said, the legacy American hospitality brands that built their businesses in China are to going to face significant challenges. In the coming years, new local upstarts will emerge, and their brands will fall out of favor with the Chinese consumer. Only the incumbents who view the Chinese market as a source of talent innovations that can be shared and exported to their home markets, will survive. It is also likely that as Beijing’s priorities have shifted with higher importance placed on social purpose, environmental sustainability and the growth of domestic market consumption, a new generation of category leaders can seize the day and build profitable domestic businesses in China. For example, hospitality brands could focus more on local community initiatives supporting the 30 million migrant workers, mostly mothers who comprise nearly one-third of China’s hotel labor market and live apart from their families, with an annual trip home.

Many of the leading global brands in luxury hotels, including Mandarin Oriental, Peninsula, Rosewood and Shangri-La are Hong Kong based. Seeking a path to recovery after the pandemic and Zero-covid, the newly elected Hong Kong government has also designated human capital in travel and hospitality as a high priority for its investment program matching ventures with industry corporates and investors in Greater China.

话虽如此，在中国建立业务的美国传统酒店品牌将面临巨大挑战。在未来几年中，中国本土的新贵企业将会崭露头角，而传统品牌将失去中国消费者的青睐。只有那些将中国市场视为人才创新之源并将其转化利用至其本土市场的传统品牌才能继续生存。随着中国政府将其重心转移至社会目的、环境可持续性和国内市场的消费增长，新一代的行业领袖有望抓住机遇，在中国建立盈利的国内业务。例如，酒店品牌可以更多关注当地社区对外来的3千万务工人员的帮助支持，他们当中大多数是母亲，作为占中国酒店劳动力市场的近三分之一的群体，她们与家人分开生活，每年只有一次返乡探亲的机会。

许多国际知名的奢华酒店品牌，包括文华东方酒店、半岛酒店、瑰丽酒店和香格里拉酒店，其总部都位于香港。为了在新冠疫情和动态清零政策结束之后寻求复苏之路，新当选的香港政府也将旅游业和酒店业的人力资本作为其投资项目的重中之重，以便与中国内地的行业企业和投资者步调一致。

The massive government stimulus after the pandemic also represents a once in a generation opportunity for the most innovative U.S. brands to ramp up investing in China and targeting its domestic market. As part of its post Covid-19 stimulus plan, China will be investing trillions of RMB into service sectors. The ramped-up spending will aim to spur infrastructure investment, backed by as much as 2.8 trillion yuan ($394 billion) of local government special bonds.

疫情之后政府的大规模经济激励措施也为美国最具创新精神的品牌提供了一个千载难逢的机会，来加大在中国的投资力度并瞄准中国的本地市场。作为疫情后振兴规划的一部分，中国政府将向服务业投资数万亿元人民币。增加支出的目的是激励基础设施投资，其背后由高达2.8万亿元人民币（合3940亿美元）的地方政府特别债券作为支持。

If you have the courage to see through the politics and are considering scaling your brand globally, you should consider capitalizing on the coming economic recovery in China in the next 5 years. But how should a Western hospitality executive approach building a winning team in China? What does it take to succeed as an employer in China in 2023 and beyond? Having helped many Western brands enter the market and been the CEO of a Chinese based company that created a new category for domestic travelers, I will share my top 8 (lucky) lessons for how to win.

如果您有识破政治的勇气和能力，并考虑在全球范围内推广自己的品牌，则应考虑在未来5年内利用中国即将到来的经济复苏的机会。但是西方的酒店业管理者应该如何在中国打造一支优秀的团队？2023年及以后在中国成为一名成功的雇主需要具备哪些素养？我作为一名帮助过许多西方品牌进入中国市场的业内人士，以及一家针对国内旅客创建了全新行业类别的中国公司的CEO，将分享我成功的八（幸运数字）大经验。

1. Build a Purpose Driven Brand/Zhenchendge/Wang Ming

建立目标驱动的品牌/真诚的/ Wang Ming

If your brand passes the Chinese measure of sincerity, or “Zhenchendge,” and makes a positive social impact and you are in it for the long term, consider expanding into China.

如果您的品牌通过了中国的诚信标准，即“ 真诚的”，并且对社会产生了积极的影响，而您又打算长期这么做，那么考虑将业务扩展到中国。

Chinese consumers have become more sophisticated, more worldly, and more socially conscious. President Xi’s anti-corruption and anti-consumerism campaign has been successful, and conspicuous consumption is out of favor. Chinese consumers, led by Millennials and Gen X/Gen Y, are seeking individualized experiences with authentic brands with a purpose and social cause.

中国消费者已经变得更加成熟，更加世俗以及更具有社会意识。习近平主席的“反腐倡廉”运动取得了成功，挥霍无度已不再受欢迎。以千禧一代（Millennials）和X/Y世代（Gen X/Gen Y）为首的中国消费者，正在寻求具有目的性和社会性的纯正品牌的个性化体验。

Consider a key finding of Peking University Professor Lisa Grunberg’s ethnographic research of the K11 mall in Shanghai:

以北京大学教授丽莎·格伦伯格（Lisa Grunberg）对上海K11购物中心的民族志研究重要发现为例：

This growing sense of regard for local brands comes despite years of mistrust in local producers, as a general sense of national pride is increasing alongside local quality standards. In many cases, China’s local brands are much more able to tap into local stories and narratives. Considering that the geopolitical tensions and even the recent coronavirus outbreak are further fueling this sense of national pride, it is likely that as well as catering to exciting and unique offline experiences, appealing to this new identity will be increasingly important.

“尽管多年来一直对国产厂商持有怀疑 ，但人们对国产品牌的关注和尊敬正在提升，这是一种伴随着国产商品质量标准的提高而来的普遍民族自豪感增强的体现。在很多情况下，中国国产品牌更有能力代入到本土故事和事件中。考虑到地缘政治的紧张局势，甚至是最近的新冠病毒爆发，都在进一步加强这种民族自豪感。因此，品牌除了提供令人振奋和独特的线下体验外，打造与这种民族自豪感相关的品牌新身份也将变得越来越重要。”

In response to changes in Chinese consumer preferences and government policies, the market entry and development strategy adopted by these affordable, socially conscious brands is a throwback to the days before corporate globalization as we know it. They have adopted what Harvard Business School Professor Michael Yoshino calls a “multi-domestic strategy,” where China is treated as a distinct local market with local production and operations.

为了应对中国消费者偏好和政府政策的变化，这些具有社会意识的平价品牌所采取的市场进入和发展战略退回到了我们所知的企业全球化之前的时代。这些品牌采取了哈佛商学院（Harvard Business School）教授吉野幸男（Michael Yoshino）所称的“多国本土化战略”（multi-domestic strategy），即中国被视为一个拥有本地生产和运营的独立本地市场。

To build a winning team that grows a brand in China today, business leaders must develop a clear plan and message for how it will improve the country. Consider the case study of Tesla. Tesla invested $5 billion into its Chinese factory to sell cars in the country and Tencent is one of its biggest shareholders. No foreign company has invested in a bigger Chinese factory than Tesla, which aims to have 100% of parts locally sourced by 2023. Tesla is developing a Chinese design and engineering center to develop new cars specifically for the China market. Their approach to the China market has resulted in various concessions including tax credits, subsidies, faster approvals, and preferential loans. Prices for Tesla’s Model 3 sedans are similar to local manufacturers such as NIO Inc. and Xpeng Motors, while undercutting global players such as BMW and Daimler AG.

要在今天的中国打造一支能够实现品牌成长的成功团队，商业领袖必须制定一个清晰的计划和传达一个明确的信息，说明企业会如何助力中国的发展。以特斯拉（Tesla）为例。特斯拉（Tesla）向其中国工厂投资50亿美元，以在中国销售汽车，而腾讯是其最大的股东之一。没有一家外国公司在中国投资的工厂比特斯拉（Tesla）的更大，其目标是到2023年底实现100%的零部件在中国本土采购。特斯拉（Tesla）正在构建一个中国设计和工程中心，专门为中国市场开发新车型。特斯拉（Tesla）这种进入中国市场的模式为其获得了各种优惠，包括税收抵免、补贴、快速审批和优惠贷款。特斯拉Model 3轿车的价格与本地制造商如蔚来汽车（NIO Inc. ）和小鹏汽车（Xpeng Motors）的价格相当，而要低于如宝马（BMW）和戴姆勒（Daimler AG）在内的全球汽车制造商的价格。

Many American legacy brands have found a 2nd life in China due to deep local partnerships, including General Motors (Buick is the #1 selling car) and Howard Johnson (which, almost extinct in the U.S., has over 100 five-star hotels in China). This has happened in large part because the local partners have made a positive social impact with local and provincial governments, are effective for their equity investors and lenders. In almost all cases, business leaders must maintain strong relationships with government officials who are measured on job and wealth creation and social capital. Having transformed their country, most Chinese business leaders are now motivated by “Wang ming” or a higher level of “total dedication.” Offering a brand or business that becomes a new global standard and improves the environment or has a positive social impact scores highest.

许多美国传统品牌通过与当地企业的深度合作而在中国获得了重生，包括通用汽车（General Motors）（别克（Buick）是其销量排名第一的汽车）和豪生酒店（Howard Johnson，在美国几乎绝迹，而在中国拥有100多家五星级酒店 ）。 之所以出现这种情况，很大程度上是因为当地的合作伙伴对地方政府和省级政府产生了积极的社会影响，这对他们的股权投资者和贷款人影响很大。几乎无一例外，商业领袖都必须与政府官员保持密切的关系，而政府官员对企业的衡量标准来自于为当地创造的工作机会带来的财富和社会资本。在中国产业转型之后，现在大多数中国企业领导人的动力来自“Wang Ming”，或者更高层次的“全心全意为人民服务”。让品牌或企业具备这些意识已经成为一种新的全球标准，其中改善环境或具有积极的社会影响力获得成功的机会最大。

2. Many businesses and brands seek to enter the China market with a deal or project and set up an office in Hong Kong. This is the wrong mindset. Rather than executing a transaction, brands are better off setting up a listening post in mainland China to study and explore the market.

发现中国/学习中国文化

许多企业和品牌试图通过一次交易或一个项目进入中国市场，并在香港设立办事处。这是错误的心态。与其只是完成一桩交易，不如在中国大陆设立据点，来研究和探索中国市场。

The era when you could simply do a deal and enter the market with a foreign brand are ending. The hotel industry is a case in point. According to C-Trip and the Chinese Tourism Authority, China’s domestic tourism spending was over $700 billion in 2019, almost 7 times its lauded $115 billion outbound travel spending. In this context, Chinese hotel owners are phasing out many full-service international brands and beginning to manage their own properties. Wanda, which currently owns hotels managed by IHG, Hyatt, and Hilton, in addition to Accor, is allowing existing contracts with foreign partners to expire, according to the Nikkei report, and will opt to self-manage any new hotels it develops under its own operating company. Capital Tourism Group, the listed arm of Beijing Tourism, China’s largest state-owned tourism conglomerate, is setting up its own chain of luxury hotels.

简单通过达成一项交易便可以将一个国外品牌顺利带入中国市场的时代即将结束。酒店业就是一个很好的例子。根据携程和中国旅游局的数据，2019年中国国内旅游支出超过7,000亿美元，几乎是其引以为豪的1,150亿美元境外旅游支出的7倍。在这种背景下，中国的酒店业主正在逐步淘汰许多全服务类型的国际品牌，开始管理自己的酒店。根据《日本经济新闻》（Nikkei）的报道，万达集团目前拥有由洲际酒店集团（IHG）、凯悦集团（Hyatt）、希尔顿集团（Hilton），以及雅高集团（Accor）管理的酒店，并将不再续约与这些外国合作伙伴之间现有的合同，同时转为自行管理其运营公司下开发的新酒店。首都旅游集团（Capital Tourism Group）是中国最大的国有旅游企业集团北京旅游（Beijing Tourism）的上市子公司，目前正在建立自己的豪华连锁酒店。

China is a 5000-year-old civilization but a very young country. Like most large countries, mainland China is very regional, diverse, and multi-cultural. For centuries it was a fragmented into fiefdoms, each run by its own warlord. Chinese people embrace foreigners who study their dynastic history, ethnic groups and language. A deep understanding of the ten languages and dialects, including Mandarin (Putonghua), Cantonese (Yue), Shanghainese (Wu), and others is just the beginning. Foreign business leaders should familiarize themselves with Chinese classic literature starting with the Tang Dynasty (618-907 A.D.) which included Lao Tzu, Confucius, and Mencius.

中国是一个具有五千年文化历史的文明古国，但也是一个非常年轻的国家。与大多数大国一样，中国大陆具有显著的地域性，多元性和文化多样性。几个世纪以来，中国曾被分割成多个领地，每个领地都由各自的军阀统治。中国人欢迎外国人学习中国的王朝历史、民族和语言。深入了解十种语言和方言，包括官话（普通话）、广东话（粤语）、上海话（吴语）等，仅仅是一个开始。外国商界领袖应该熟悉唐朝（公元618-907年）以来的中国古典文学，包括有关老子、孔子和孟子的文化。

Any business leader who seeks to build a successful venture in China must possess an intellectual curiosity and passion for learning. A Chinese market leader must have a unique ability to understand patterns of thought and behavior or “Wenhua,” reflected in Chinese culture. This is imperative to understand the internal contradictions between authoritarian style communism and ruthless capitalism. It is imperative to travel across the regions, from Jiangsu to Fujian and Sichuan province and to 2nd and 3rd tier cities where most of the economic development is now occurring. Across regions, there is a wide diversity of work cultures and government roles in financing companies and approving projects and local business leaders. Each region has its own worldview and international trading and investment relationships.

任何想在中国成功创业的商界领袖，都必须具备求知欲和学习热情。中国市场的领导者必须具备理解中国文化中所反映的思维和行为模式（或所谓的中国“文化”）的独特能力。这对于理解专制式的共产主义和残酷的资本主义之间的内在矛盾至关重要。省际旅行非常关键，从江苏省到福建省和四川省，再到目前经济发展最快的二、三线城市。不同地区在工作文化，政府在企业融资和项目审批方面的职能，以及当地商业领袖等方面有着巨大的差别。每个地区都有自己的世界观，以及国际贸易和投资关系。

3. Build Deep Partnerships/Jiao Pengyou (T’su-oh Pung-yoh-ou)

建立深厚的伙伴关系/交朋友

In China, the expression “Jiao Pengyou” (“to make friends”) is critical. Friendships, or Youyi, are everything. Typically, its’ necessary to get introductions from third parties who are in favor and well acquainted with individuals you want to do business with, often through personal family contacts. This is different than the basis for relationships in the West. It is less about those similar interests and hard facts, and more about emotional intelligence. Youyi is typically facilitated by 3rd parties and is established in person through social engagements.

在中国，“交朋友”至关重要。友谊就是一切。通常情况下，如果您想和某人做生意，你必须通过熟悉这个人的第三方牵线搭桥获得引荐，通常这一过程是通过私人家庭关系完成的。这与西方建立关系的基础不同。在中国建立关系，不在于志趣相投和客观事实，而在于情商。友谊通常由第三方推动，并通过社交活动亲自建立。

This is not to suggest that Chinese business leaders and state-owned enterprises are not intellectual or driven by knowledge, or “Shi,” evidenced by the culture of nation-wide testing, including in philosophy. The Chinese have extraordinary respect for knowledge. But Americans seeking to establish their business in China should shift their mindset away from cold data and hard facts that support a business case. If you approach a relationship, with a client, partner, vendor, or employee as a deal or a business case subject to western style universal ethics, you are not likely to succeed.

这并不是说中国的商界领袖和国有企业领导者不是知识分子，不是由知识驱动，或者不是“士”，全国范围的考试文化（包括哲学）就证明了这一点。中国人非常尊重知识。但是，寻求在中国建立业务的美国人应该改变其思维方式，不再依赖那些冰冷的数据和客观事实来支持商业案例。如果你在处理与客户、合作伙伴、供应商或员工之间的关系时遵循西方普遍的道德规范，就像处理一笔交易或一个商业案例一样，那么你就不太可能成功。

4. Manage the Lawyers and Keep Deals High Level

管理律师，保持高水平交易

Confucius believed that people play by the rules because of their inherent virtue, rather than manufactured laws or “falv.” Even today, Beijing prefers to issue directives rather than write laws. Lawyers don’t play a significant role in Chinese business transactions or in managing conflicts once you’re in business. They typically show up at the end of a deal and do what they are told. Due diligence on new friends is not performed by accountants and lawyers, and business contracts may have little to do with how business may evolve in the future.

孔子认为人们遵守规则是因为其内在美德，而不是人为的法律。即使在今天，中国政府也更倾向于发布指令而不是制定法律。一旦业务开展后，律师在中国的商业交易或纠纷处理中并不担任重要职能。律师通常会在交易结束时出现并按要求行事。对新朋友的尽职调查并不是由会计师和律师完成的，而商业合同与未来的业务发展走向或许也没有多大关系。

5. Budget Five Times Longer than Anticipated and Keep Negotiating/Tan Pan

留出比预期多五倍的时间并持续谈判

Building relationships requires considerable time and money investment anywhere in the world. But in China, it requires numerous events, dinners, social functions, and numerous trips. If you’re in a hurry, it will be obvious, and the other side will either take advantage or just quickly extract information from you and declare victory. The Chinese like to negotiate or “Tan Pan,” even after the deal is signed. If you budgeted 2 months, assume it will take 10 months. The deal never ends, so appoint a relationship manager who has deal fluency and is bilingual. The Chinese version of the agreement is all that matters. And don’t be surprised if at the last minute you receive a message requesting more changes including a phone call or knock on your door right before a signing ceremony from a legal representative or translator acting on their own behalf to renegotiate. That has happened to me a few times and in retrospect it probably means I scored some points in the negotiation.

在世界任何地方建立关系都需要投入大量的时间和金钱。而在中国更需要参加无数次的活动、晚餐、社交聚会和无数次的出差。如果你很迫切达成交易，那就会被对方察觉到，然后要么会占你便宜，要么迅速从你那里获取信息后宣布胜利。中国人喜欢谈判，甚至在协议签署之后也是如此。如果你预计要花2个月进行谈判，那就预设需要10个月。交易永无止境，因此最好任命一位具有专业知识且会说双语的关系经理。协议的中文版本才是最重要的。如果在签字仪式开始前的最后一分钟，对方的代表律师或翻译给你打电话，甚至亲自上门要求重新谈判和协议的更多修改，也请不要感到惊讶。这种情况在我身上发生过几次，现在回想起来，这可能意味着我在谈判中获得了一些优势。

6. Keep a Close Eye on People but Practice Mianzi/Avoid Choh-ou

密切注意周围的人，给面子/避免让人当众出丑

Westerners believe in 360-degree feedback and are used to a “thick skinned” work environment where employees, business contacts, and government officials can be openly criticized. In contrast, the Chinese believe in Confucian-based harmony, “chou” or smelly criticism on an individual level can be dangerous and, when necessary, should be done privately and diplomatically. Criticism of government or public officials is considered treason.

西方人相信360度全方位的反馈，习惯于“厚脸皮”的工作环境。在这种环境中，员工、业务联系人和政府官员都可以受到公开批评。相比之下，中国人相信以儒家思想为基础的和谐，让人“当众出丑”或个人层面的严厉批评都是不合时宜的，必要时应该私下委婉地进行沟通。对政府或公共官员的批评被视为叛国罪。

The Chinese concept of “face” or Mianzi means respecting and complimenting others, so they give you face in return. One of the common issues facing foreign business leaders in China is how to address western definitions of conflicts of interest. In China, locals are often be on both or multiple sides of a deal. It is considered acceptable in business, especially if the parties are contractors or brokers. Certain foreign countries enable their companies to make investments that are illegal for U.S. companies. While the contractors and locals are under Chinese law and it’s hard to be sure who is doing what, make sure it’s clear where you stand but communicate it privately and diplomatically.

中国人所说的给“面子”是指尊重和称赞他人，这样他们也会给你“面子”。外国商界领袖在中国面临的一个共同问题是如何处理西方定义下的利益冲突。在中国，当地人往往可以代表一笔交易的双方或多方。这在商业上是可以接受的，特别是当事人是承包商或中间人时。某些国家允许其公司进行一些对美国公司来说是非法的投资。当承包商和当地人受中国法律的约束且很难对他们进行明确的角色划分时，请明确表明你的立场，但同时要私下用委婉的方式进行沟通。

7. Enable “Can do” Chinese Partners to Innovate/Ganjin

激发“能干”的中国合作伙伴的创新力/有干劲

There is considerable labor market innovation in China and in many industries, China is setting new global standards for quality led by the Ganjin, or new generation of entrepreneurs that number in the millions who have the ambition, courage, and strength to take risks.

The bottom line is American business leaders must protect their brands but not in the way they do back home. It’s best to keep standards and requirements at a high level and approach Chinese employees as a partner in innovation and brand building, not as a subsidiary branch created to harvest a brand, product or service made in the West.

中国有着相当大的劳动力市场创新，中国也在许多行业中设立着新的全球质量标准。这一切都是由“干劲”，或者说数以百万计有雄心、有勇气、有实力去冒险的新一代企业家领导的。

归根结底，美国商业领袖必须维护自己的品牌，但不能像在美国国内那样。最好是保持较高的标准和要求，把中国员工作为创新和品牌建设的合作伙伴，而不是一个用以收割西方制造的品牌，产品或服务的分支公司。

8. Be Discreet/Zhongguo

谨行慎言/中国化

In 2019, the National Basketball Association (NBA) got into trouble after Houston Rockets General Manager Daryl Morey tweeted — and quickly deleted — a message of support for Hong Kong. NBA Commissioner Adam Silver issued contradictory statements defending the NBA’s stance to Americans and apologizing to the Chinese. With the blockage of NBA games from CCTV and Tencent this season, the most ardent Chinese observers have searched out “illegal channels,” such as pirated live streams offered by some sports booking services. When Tencent’s services were available, few bothered to watch the illegal content, which usually is of poorer quality. The fan demand is undeniable and once it resumes playing, the NBA will be back in China. But there is a big lesson here for American brands doing business in China.

2019年，休斯顿火箭队总经理达雷尔·莫雷（Daryl Morey）在推特上发了一条支持香港抗议者的推文并随后迅速删除， NBA随之陷入困境。NBA总裁亚当·萧华（Adam Silver）发表了自相矛盾的声明，向美国人表示捍卫NBA的立场，同时又向中国人道歉。随着本赛季中央电视台和腾讯平台对NBA比赛的封杀，热情的中国球迷纷纷搜索“非法频道”，例如一些体育预订服务提供的盗版直播。腾讯平台的直播还在时，很少有人会去观看这些通常质量较差的非法内容。球迷的需求是毋庸置疑的，一旦恢复播放比赛，NBA将会回到中国。但对于在中国开展业务的美国品牌来说，这是一个很大的教训。

In China, social change is a long and gradual process that is best handled privately and behind doors. A single, impulsive tweet from the equivalent of a brand leader did billions of dollars of damage to the NBA and its Chinese partners Tencent and CCTV.

在中国，社会变革是一个漫长而渐进的过程，最好是在私下或者幕后来进行。单单一条来自品牌领导者的冲动性推文便对NBA及其中国合作伙伴腾讯和中央电视台造成了数十亿美元的损失。

Furthermore, discretion also requires leading by example. If you intend to build a brand or business in China, practice Confucian principles and blend in with the people. Make sure your car is the bestselling Buick mini-van and if you fly private, do not talk about it. Carry a Chinese phone so your local employees can communicate with you on WeChat.

此外，谨慎也需要以身作则。如果您打算在中国创立品牌或业务，请践行儒家思想，融入人民群众。确保您的座驾是最畅销的别克商务车，而不要提及您乘坐私人飞机的事情。使用中国品牌的手机以便本地员工可以使用微信与您沟通。

I worked with many billionaires and princelings in China who dressed simply and did not travel with an entourage.

我曾与中国的许多亿万富翁和官二代共事，他们衣着简朴，没有随行人员陪同。

Conclusion: Calling All Disruptors - China is Back

结论：对所有创新者喊话——中国又回来了

The old expression “China is the factory of the world” no longer holds. Today, China’s GDP is driven by services, technology and innovation. In contrast to India, a new generation of leaders educated at top U.S. universities are coming back to China. Consequently, China has established leadership positions in many high-tech sectors including health care, biotech, social media, online education, human resources technologies, telecommunications, entertainment, and travel.

“中国是世界工厂”的陈旧说法已经过时。今天，中国的GDP是由服务业以及科技和创新所驱动。 与印度相反，在美国顶尖大学中受过教育的新一代中国领军人物正在回到中国。 因此，中国在医疗保健、生物科技、社交媒体、在线教育、人力资源技术、电信、娱乐和旅游等许多高科技领域都确立了领先地位。

Similar to the post-2008 financial crisis, Beijing is aggressively investing in rebuilding the Chinese economy. The marriage between the U.S. and China is over and the process of decoupling has commenced, and it will negatively impact incumbent category leaders. The economic opportunity in China is bigger than ever and a new wave of innovation is coming quickly to serve a more sophisticated consumer who looks beyond social status and towards purpose-driven brands that make a positive impact on China and the world.

与2008年金融危机过后的做法类似，中国政府正在大举投资重建中国经济。美中两国的联姻已经结束，脱钩进程已经开始，这将对当前的行业领导者产生负面影响。中国提供的经济机遇比以往任何时候都更大，新一轮的创新浪潮正在迅速到来，以服务于更为成熟的中国消费者，他们不再关注社会地位，而是转向关注对中国和世界产生积极影响的目标驱动型品牌。